SAP Supply Chain Management (SAP SCM)

The solution for management of logistic networkSAP SCM allows to work, plan jointly, to execute and coordinate network of logistics chains.

SAP SCM is a part of SAP Business Suite that gives to the organizations a unique opportunity to work in the unified integrated environment covering all business processes of the enterprise.

The solution "Management of Logistic Network" (SAP SCM) allows to pass from the management concept with a linear logistics chain of the company to management of adaptive logistic network. Remaining customer-oriented, raising the solution allows to increase business competitiveness, providing data access and to resources of partners in a logistics chain and giving an opportunity to intellectual adaptation to the changing market conditions.

Use of the solution "Management of Logistic Network" already helped many enterprises to improve the logistic business processes and transactions. Actually, the solution "Management of Logistic Network" is the only complete solution which allows the companies to adapt processes in a logistics chain to constantly changing conditions of competitive environment.

The solution "Management of Logistic Network" (SAP SCM) helps to create adaptive logistic networks, providing to the enterprises of means for planning and implementation which allow to manage transactions within the enterprise, and the modern technologies for the organization and coordination of joint work aimed at expansion of these transactions for a framework of the enterprise. As a result of implementation of this solution of the enterprise get measurable and essential advantages thanks to cost reduction, increase in level of service and performance that finally results in higher profitability of business of the company.

SAP SCM is based on the concept of Demand Driven Supply Chain (Supply chain management on the basis of demand). Such approach makes demands to the information environment supporting process in which each participant can communicate goods, services with other participants. The second feature of approach consists in the developed synchronization between participants of the process and their reaction to the shift in demand caused by the different reasons – change of the product, holding promotion actions, change by distribution, etc.^[1]

Applications as a part of SAP SCM

• SAP Advanced Planner and Optimizer (SAP APO)
• SAP Inventory Colaboration Hub (SAP ICH)
• SAP Event Management (SAP EM)
• SAP Service Parts Management (SAP SPM)
• SAP Forecasting and Replenishment for Retail (SAP F&R)
• SAP MRP Monitor — a system allows to classify materials by a number of parameters, including by seasonality and trends, cost, turnover and liquidity.

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